Hmm..... interesting (cheers @Joelstar for leading me to the RTR announcement).
It would see that WGX has potentially got another source of ore via a Toll Treatment deal via RTR for CY25.
I had through the NMG/Crown deposit was the only option for the near term, but pleasingly, small caps are finally cottoning on to making their assets viable for toll treatment, versus the old days of just 'hoping' to discover a motherlode and selling it to the highest bidder.
I just watched a brief video by the MD of RTR which mentioned they plan to be in production by next year at their Western Queens deposit, with a view to treating at either RMS (Checker mill), or... for me the more likely option, Tuckabianna, which I believe could increase it's throughput due to softer ores (plus right now, it is still relying on some stockpiles. That being said, RTR will need to be quick. I believe RMS will have little interest in Western Queens (though they do have first right of refusal over WQ), as their recent T/O of MGV has given them more than enough open pit ore for the next 3-5 years (especially so if they also expand their Eridanus open pit, which is huge).
The initial pit (my rough attempt below) is likely to see around 40-50k ounces, which whilst not large, should see grades around 1.5-2.0g/t. The stripping will likely be high too, but.... RTR has pulled off what I think is a very savvy deal considering the asset was basically valued at zero by the market anyway.
Getting up to $35m in funding, upfront, to produce from the pit is how most small caps should be undertaking such deals.
Whilst I am not at all a holder of RTR, I do view this as a positive development, as really, most of the small caps in the Murchison have not moved with the times and focused on getting whatever they have into production via toll or ore sale agreements. Hopefully some of the other players that continue to have their heads stuck in the sand (ODY, GBR etc) will eventually change their tune.
If WGX can secure softer ore for the Tuckabianna plant, recoveries will rise, throughput will rise and with the plant having fixed costs.... there is little downside.
This is obviously not going to happen overnight, but... could be a nice tailwind at the end of CY25 for WGX if anything eventuates.
WGX Price at posting:
$2.86 Sentiment: Hold Disclosure: Held
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